Tech

Apple sets event; iPod, Apple TV updates expected

Analysts say Sept. 1 event may also include changes to iTunes offerings

By

DanGallagher

SAN FRANCISCO (MarketWatch) -- Apple Inc. said Wednesday that it will hold an event next week, at which the company is widely expected to update its line of iPod digital music players as well as its Apple TV product.

Apple
AAPL, -0.32%
sent an invitation to selected members of the news media on Wednesday afternoon. The "special event" will take place in San Francisco on Sept. 1.

Per its usual routine, the company gave no details about what products it plans to discuss at the event, though the invitation included a picture of a guitar. The company has typically called a media gathering in the early fall to update its iPod line ahead of the holiday shopping season.

"We believe Apple will hold a similar event this year to announce the first iPod touch with a camera, an updated Apple TV with an App Store, and iTunes changes, like a cloud-based iTunes service," Gene Munster of Piper Jaffray wrote in a note to clients Wednesday morning, before the event was announced.

The iPod is now Apple's smallest product line in terms of revenue, behind the iPhone, Mac computer and iPad tablet. The company sold about 9.4 million iPod units during its June quarter -- down 8% from the same period last year.

However, the device is still considered an important part of its growing iTunes ecosystem, and the iPod Touch extends the market for app developers targeting the iPhone and iPad devices.

Analysts also expect the company to revamp its Apple TV offering, which has seen relatively light sales since it first went on the market three years ago.

Shaw Wu of Kaufman Bros. wrote in a note to clients Wednesday that Apple could add the iTunes App Store to the device and increase its potential market. He also believes recent press reports that Apple will start offering $1 TV show rentals though iTunes will also expand the market.

"We view this development as positive not just for Apple TV, but the entire Apple ecosystem (iPhone, iPad, iPod touch, iTunes, Macs) as this increases their utility value," he wrote.

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